SWITZERLAND - Credit Suisse Asset Management's (CSAM) real estate investment vehicles are acquiring 100 properties valued at CHF1.2bn (£505m) from the Novartis Pension Fund.
In future, the Novartis Pension Fund will invest only indirectly in real estate through stakes in a range of CSAM investment vehicles.
CSAM said the conversion of the real estate holdings into indirect investments is in the interests of the members of the pension fund, who will benefit from lower administration costs, a generally better performance and a more diversified portfolio in geographic terms.
Following completion of this multi-step transaction in spring 2002, the Novartis Pension Fund will be invested primarily in CS 1a Immo PK – Switzerland’s tax-sheltered real estate fund – as well as in the new CS Real Estate Investment Foundation and in CS Real Estate Fund Siat, a residential property fund.
The changeover from direct property ownership to indirect holdings is part of the Novartis Pension Fund’s redefined real estate investment strategy.
We chose CSAM because it is one of the leading players in the field of indirect real estate investment with an experienced and successful management team, because its product range is geared to the needs of pension funds and because it allows optimum geographical diversification, explained Gino Pfister, managing director of the Novartis Pension Fund.
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